Ambit Energy is an international multi-level marketing company that provides regulated electricity and natural gas services in the US energy market. The company's headquarters is located in Dallas, Texas, and its call center is located in Plano, Texas. Ambit Energy was founded in 2006 in Addison, Texas by Jere Thompson Jr. and Chris Chambless.
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Business model
Ambit Energy acquires customers through an independent network of consultants working directly with customers. Ambit Energy uses a multilevel marketing model, and is a member of the American Direct Selling Association, a public relations and lobbying organization that represents the interests of multilevel marketing companies in the United States.
Ambit usually offers customers a one or two year fixed rate contract for utilities. After the contract expires, the service can automatically switch to a package with a variable rate unless the customer manually updates the fixed rate package. In some cases, the Ambit variable rate plan is much more expensive. This has prompted complaints and lawsuits from consumers, and the investigation of the New York Public Service Commission. In December 2015, the Public Service Department in New York announced that it had received a refund for 1,566 Ambit subscribers, for a total of nearly one million dollars.
Ambit Energy was named the Company's Oldest Growing Private Enterprise 2010 by Inc. Magazines . The company put 390 in 2011, 1,996 in 2013, and 2,074 in 2014.
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Products and services
Ambit Energy offers electricity, gas, solar power and Green-e services, offered with Renewable Energy Certificates (USA). Products and services are offered through their independent consultants.
Solar
Solar is offered through Sunrun in some Ambit markets: California, Connecticut, Massachusetts, Maryland, New Jersey, and New York. This service is sold through an Ambit Independent Consultant. Their customers are then matched with representatives of Sunrun who complete the registration process.
Criticism from consumer supporters
Ambit Energy is under the supervision of regulators and consumer advocates. The 2014 story by ConsumerAffair documents many complaints by customers whose rates are doubled or tripled without warning. The complainants also said it was difficult to contact Ambit to discuss rates or change plans.
In New York, state officials and consumer groups have claimed that sales representatives, paid by the commission, have misinterpreted the contract, exaggerated the financial benefits of membership, and were very aggressive in recruiting vulnerable groups such as native and non-native speakers English. In 2014, the New York Public Service Commission (NYPSC) received 450 complaints about the company, mostly due to price galloping, or an unexpected rate hike after the expiration of the contract. In May 2015, NYPSC launched an investigation into the company. The results of the NYPSC investigation were announced in December 2015, with Ambit returning 1,566 subscribers for a total of $ 950,700.
The company has become a defendant in a class action lawsuit in Illinois, New York, New Jersey, and Pennsylvania. The New Jersey lawsuit alleges that Ambit Energy Holdings LLC is unfairly raising its tariffs dismissed by a judge, who decides that Ambit discloses its tariffs in terms of its services.
In Texas, Ambit accumulates $ 57,500 in fines between 2010 and 2012 for violating customer protection rules.
Carol Biedrzycki, from the Texas ROSE consumer organization, has said that representatives of multi-level marketing energy companies are more focused on marketing than providing sustainable services. Biedrzycki also criticized Ambit and several other Texas energy providers to fill in connection costs and excessive disconnection.
Market
Ambit Energy provides energy in 17 regions of the United States, all of which have deregulated the energy market. Ambit operates in California, Connecticut, Delaware, Illinois, Indiana, Maryland, Massachusetts, Maine, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Texas, Virginia, and Washington, D.C..
In May 2017, the company started operations in Japan.
In November 2017, the company began operations in Canada.
References
External links
- Ambit Energy - Official site
Source of the article : Wikipedia
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